In the software development process, documentation plays a crucial role in ensuring the success of a project. Two key documents used in the process are the Business Requirement Document (BRD) and the Functional Requirement Document (FRD). While both documents might seem similar, they serve different purposes and target different audiences.
Project Management Institute defines BRD as a document that describes a “business problem or opportunity and identifies key stakeholders.” It captures high-level business requirements, such as business processes, rules, and market requirements documents. On the other hand, FRD is mainly targeted at the development team and specifies the software’s operational, performance, and security requirements.
The document contains functional and technical specifications, ensuring that the development team gets a clear description of the system’s functionalities and how it should work. Understanding the differences between BRD and FRD is crucial for successful business analysis, project management, and software development. This article aims to highlight these differences and why they matter.
TL; DR
The differences between Business Requirements Document (BRD) and Functional Requirements Document (FRD) are summarised below.
What is the purpose of a BRD and FRD?
- BRD: Defines the high-level business objectives and goals of a project.
- FRD: Specifies how a system or product should function to fulfil the business requirements.
What is included in a BRD and FRD?
- BRD: Describes the business needs, stakeholders involved, and expected outcomes. It doesn’t delve into technical specifics.
- FRD: Contains detailed descriptions of the system’s functionalities, data handling, user interface and behaviours. It’s more technical.
What is the scope of the BRD and FRD?
- BRD: Covers the broader perspective of business needs and solutions.
- FRD: Focuses on specific functions and functional features of the proposed solution.
When to use these documents?
- BRD: To be used at the initial stage of a project where the focus is on understanding what the business needs are, who are the stakeholders involved and what are the expected outcomes.
- FRD: To be used after the BRD is finalised and the project has moved into the design phase where detailed functional specifications of the system’s functionalities are needed.
Who should prepare:
- BRD: Typically prepared by a business analyst or project manager who understands the business needs and goals well.
- FRD: Usually prepared by a systems analyst or a technical team member who understands how to translate the business requirements into functional requirements.
FRD Explained
What is an Functional Requirements Document (FRD)?
An FRD, or Functional Requirement Document, is a detailed document that depicts the functional and non-functional requirements that must be fulfilled for a product or system to satisfy business objectives. A Business Analyst typically creates the FRD document.
It is a precursor to the development stage and development teams use it as a reference to design and build the product or system. The FRD document is a formal document that illustrates the business process, process functions, business rules and other relevant details.
It comprises functional requirements, non-functional requirements and technical specifications. Additionally, an FRD document includes a requirements traceability matrix, which lists each requirement and its origin to ensure it is met in the development stage. Overall, the FRD document is a detailed guide to satisfy business needs.
Why is an Functional Requirements Document important?
A Functional Requirements Document (FRD) is an essential tool businesses use to document their application’s functional requirements. It is a formal statement that outlines the detailed requirements for an application, including functional features, business rules and operational requirements. It ensures that all stakeholders are on the same page and is solution-independent, meaning different developers can use it to create solutions to meet the same requirement.
FRD is an important document for documenting requirements as it allows for conceptual flow while documenting non-functional requirements such as quality attributes. It also covers an application’s data migration, data requirements and conversion requirements. Furthermore, the FRD helps to ensure that all non-functional requirements of an application such as operational, performance and compatibility requirements are documented.
In summary, creating an FRD during the discovery phase provides businesses with a written record of the functional and non-functional requirements and acts as a foundation for the development of the solution. It ensures that all requirements statements are documented and addressed concisely and comprehensively, allowing for more accurate estimating, better planning and more successful project delivery.
What does an Functional Requirements Document include?
An FRD or Functional Requirements Document is crucial to the software development business process. It outlines the system’s functionality, the cornerstone of any software design. The document takes a holistic approach by considering all aspects of the software’s development and the client’s interaction.
The primary audience for an FRD is the client, who must be on the same page as the developers and testers about the software’s functionality. The document includes all customer requirements and serves as a reference for the development team.
Any change request must align with the FRD to avoid scope creep, a common issue for a few companies. Testing teams also use the FRD as a guide to ensure that the software meets all the product requirements and document standards.
How can businesses create an Functional Requirements Document?
To create an FRD (functional requirement document), businesses need to follow a set of procedures and rules to ensure that the document covers all the functional requirements of their business. This document is a formal, detailed illustration that outlines the functional and technical specifications required to satisfy businesses’ needs.
The first step is gathering all the stakeholders’ requirements, including business processes, rules, process functions and non-functional requirements. A business analyst would collect this information, who would ensure that all details are captured, including critical components, the project sponsor and the client’s entire work.
After collecting the information, the business analyst should work closely with the development team to document the functional and technical requirements. This will involve data flow diagrams, business events and use cases illustrating how the business requirements will be mapped to the subsequent project deliverable.
Once the document has been created, it should be validated and reviewed by all stakeholders, including the project sponsor, instance system architect, middle management and the client. Furthermore, it must be presented in a formal, detailed document that avoids technical jargon to ensure that the document is readable by all stakeholders.
The requirements traceability matrix should be included in the document to ensure all requirements are met. Finally, the document should include the test cases to ensure the FRD satisfies the business.
BRD Explained
What is an BRD?
A BRD, or business requirement document, is a formal document illustrating all the requirements for a specific project. The primary audience for this document is the client, as it serves as a detailed summary statement of their entire work with the technical expert.
The BRD includes various elements such as the market requirements document, functional requirements, process function and technical specification. It also incorporates user stories and the product requirements document, ensuring that all requirements are covered.
The customer communicates their needs and requirements to the technical expert and the client interaction helps strengthen these details. The BRD is a crucial guide for the development team, ensuring all stakeholder requirements are met and the project is completed successfully.
Why is an BRD important?
A Business Requirements Document (BRD) is critical in project management. It provides a comprehensive outline of the needs and expectations of the business for a particular project or product.
The BRD is a foundation for the development, detailing all necessary components, their interactions and the expected outcomes. It ensures all stakeholders understand the project’s goals and objectives, reducing miscommunication and setting clear expectations.
The BRD aids in defining the project scope, preventing scope creep and providing a benchmark against which the project’s success can be measured. It is a reference guide for developers, testers and other team members, ensuring everyone is working towards the same vision.
What does a BRD include?
A Business Requirements Document (BRD) includes several key components to outline the goals and expectations of a project or product.
It typically starts with an introduction, providing an overview of the project and its purpose. Then, it outlines the business objectives – the specific aims that the project is designed to achieve.
The BRD also includes a detailed description of the project’s scope, defining what will be covered and what will not. This helps prevent scope creep. It specifies user needs, detailing how the end-user will interact with the new system or product.
Market assessment may be included to understand the competitive landscape. The BRD also identifies assumptions and constraints, such as budget limitations or regulatory requirements.
It specifies acceptance criteria to define what must be done for the project to be considered complete. The BRD serves as a comprehensive guide, outlining the project’s roadmap from beginning to end.
How can businesses create a BRD?
Creating a BRD is a key step in the project planning. Typically, this task falls to business analysts or project managers who thoroughly understand the project’s objectives and the business environment.
The first step in creating a BRD is to develop an executive summary that provides a high-level overview of the project. This is followed by a detailed outline of the project’s objectives and scope. The objectives should be Specific, Measurable, Achievable, Relevant and Time-bound (SMART). While the scope clearly defines what is included in the project and what isn’t.
Next, the document should detail the business requirements – these are the business’s specific needs that the project aims to address. These could be functional (what the system should do) or non-functional (how the system should perform).
The BRD also includes a section on key stakeholders, outlining their roles and responsibilities to the project. It’s important to involve all stakeholders in creating the BRD to represent their needs and expectations accurately.
The BRD should define the acceptance criteria that will be used to judge the project’s success. This sets clear expectations for the project team and provides a benchmark against which the project’s progress can be measured.
When to use BRD or FRD?
A Business Requirements Document (BRD) and a Functional Requirements Document (FRD) serve different purposes in a project’s lifecycle and are used at different stages. A BRD is typically used at the beginning of a project to outline the business needs, goals and expectations. It provides a high-level view of what the project aims to achieve from a business perspective and guides all stakeholders to ensure everyone is aligned with its objectives.
On the other hand, an FRD is used once the business requirements have been established and agreed upon. The FRD breaks down the high-level business requirements into detailed functional requirements, explaining how the system or product should function to meet these business needs. It outlines the desired solution’s features, functional capabilities and operational constraints.
You would use a BRD when defining what needs to be achieved by the project from a business standpoint and an FRD when you’re detailing how those needs will be met technically. Both documents are crucial for successful project execution, providing clarity and direction at different stages.
Our final thoughts
Understanding the key differences in project documentation is essential for successful project management. Each document, be it a BRD, Functional Requirements Document (FRD), or other project-related documentation, serves a distinct purpose and plays a vital role at different stages of the project lifecycle.
These documents ensure alignment among all stakeholders, clarify project goals and requirements. It serve as a roadmap guiding the project’s execution.
By comprehending each document’s unique value, project managers can effectively utilise them to navigate the complexities of projects. Ensuring smooth execution and successful project outcomes. Remember, well-prepared project documentation is more than just paperwork; it’s a tool for communication, planning and successful project delivery.
If you would like to know more about how Solution Business Analysts can help prepare BRDs, FRDs or other project documentation please do not hesitate to contact us.